As reports of a European ban on privacy coins spread, an anonymity-focused cryptocurrency outperforms the market.
“Secret Contracts” are end-to-end encrypted smart contracts developed on the Cosmos (ATOM) network.
Its network allows users to make any currency or blockchain private by encrypting token balances and sending/receiving wallet addresses.
The idea employs “Secret Bridges” to “park” money from other blockchains in a smart contract on the origin chain and creates the same number on the Secret Network.
SCRT soared from $0.64 to $1.29 in less than a day on Wednesday, gaining 101%.
SCRT is trading at $0.91, up 42% in the previous 48 hours but 91% behind its all-time high of $10.38.
European and US authorities, especially the Financial Action Task Force, have increased pressure on privacy coins (FATF).
FATF wants to impose the “travel rule,” which advises that countries require cryptocurrency exchanges, banks, OTC desks, and hosted wallets to divulge identifying information on $10,000 bitcoin transactions.
Tornado, an Ethereum-based coin mixing service, was sanctioned this year.
The open-source protocol’s creator was detained in the Netherlands, prompting crypto privacy critics.
Coin Center sued OFAC for the penalties.
Executive Director Jerry Brito says,
“Not only are we fighting for privacy rights, but if this precedent is allowed to stand, OFAC could add entire protocols like Bitcoin or Ethereum to the sanctions list in the future, thus immediately banning them without any public process whatsoever. This can’t go unchallenged.”
